Updated 26 Sept 2026 6 min read
Many of the recovery problems we see could have been reduced with an hour of checks before the first shipment. Kenya has public registers that allow a supplier to confirm who it is dealing with, who controls the business and whether its assets are already pledged to others. This guide sets out the checks worth making before extending credit to a Kenyan customer.
The official company search (CR12)
The Business Registration Service issues an official search for private limited companies, commonly called a CR12, through the eCitizen portal. It is a computer-generated certificate and is used to confirm the company's registered details, including its directors and shareholders. Contract with the company exactly as it appears on the search, not with a trading name, and note its registration number and registered office.
The search also shows who stands behind the business. Where the directors or shareholders are individuals, this is the starting point for any request for a personal guarantee.
Credit reference bureaus
Credit reference bureaus in Kenya are licensed by the Central Bank of Kenya. The Central Bank's published directory lists three licensed bureaus: TransUnion, Creditinfo and Metropol. A bureau report can show whether a business has a history of defaults with lenders and other reporting institutions. The Central Bank's current directory should be checked for the latest list of licensed bureaus.
The collateral registry
Security over movable assets such as stock, equipment, vehicles and receivables is registered in the collateral registry under the Movable Property Security Rights Act, 2017. Section 34 allows a search of the registry by the identifier of the grantor, and the Registrar issues a search certificate that is proof of its contents.
A search that shows a lender already holds security over all of a customer's stock and receivables tells a supplier that, if the customer fails, there may be little left for unsecured creditors.
Other signals worth checking
- Trade references from other suppliers, ideally in the same sector.
- Recent financial statements, particularly for larger credit limits.
- Whether the company is already a party to court proceedings over unpaid debts.
- Whether the physical address and contact details match the registered details.
Terms that make recovery easier
Checks reduce the risk of a bad debt; the contract determines how easily one is recovered. Before trading begins, agree in writing:
- Payment terms, a credit limit and the right to stop supplies on late payment.
- Contractual interest on overdue amounts.
- Governing law and the forum for disputes, whether a court or arbitration.
- Personal or parent-company guarantees where the exposure justifies it.
- Retention of title to goods until payment in full, with advice on registration.
- Periodic confirmation of the account balance by the customer.
A note on retention of title
The Movable Property Security Rights Act, 2017 takes a broad view of security. It defines a security right as a property right in a movable asset created by agreement to secure payment, whatever the parties call it, and it expressly refers to retention of title agreements. Under section 15, a security right is effective against third parties if a notice is registered with the Registrar. Suppliers who rely on retention of title should take advice on whether and how to register.
Frequently asked questions
This article is general information for commercial creditors and is not legal advice on any particular matter. Submitting a claim does not create an advocate-client relationship.